The US dollar remains practically flat at the key 99.00 level on Friday after rising from fresh one-month lows of 98.80 on Thursday. The pair is trying to regain lost strength after falling nearly 1.5% last week, but investors are wary of placing large US dollar long positions ahead of the Federal Reserve’s monetary policy meeting next week.
Later on Friday, the US Personal Consumption Expenditures report is expected to confirm that price pressures remain high. However, these numbers are unlikely to change the view that the Fed will have to cut interest rates further next week to stimulate the stalled labor market. However, the main interest of the event will be on assessing what comes next
Technical Analysis: The DXY indicator is located at the neckline of the double top pattern
The daily chart of the US Dollar Index shows price action capped below the neckline of the double top pattern at 99.00. This usually indicates trend shifts, and may be an expectation of a deeper correction of the September-November rally.
Failure to return above the 99.00 area will increase pressure towards support levels in the area between 98.80 and 98.60 (lows of December 4th and October 29th, respectively). In the event of a further decline, the October 17th low at 98.00 will come into play. The measured target for the double top is at the October 3rd low of 97.60.
On the upside, a confirmation above the 99.00 level would pave the way towards the December 2 high near 99.55 and the 100.00 psychological level, the support level on November 21 and 24, which is now likely to close the way towards the November highs in the 100.35 area.
US dollar price this week
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed this week. The US dollar was the strongest against the Swiss franc.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.45% | -0.74% | -0.67% | -0.22% | -1.30% | -0.74% | -0.07% | |
| euro | 0.45% | -0.30% | -0.22% | 0.23% | -0.86% | -0.29% | 0.38% | |
| GBP | 0.74% | 0.30% | 0.33% | 0.53% | -0.59% | 0.02% | 0.68% | |
| JPY | 0.67% | 0.22% | -0.33% | 0.44% | -0.67% | -0.09% | 0.58% | |
| Canadian | 0.22% | -0.23% | -0.53% | -0.44% | -1.14% | -0.51% | 0.16% | |
| Australian dollar | 1.30% | 0.86% | 0.59% | 0.67% | 1.14% | 0.58% | 1.25% | |
| New Zealand dollar | 0.74% | 0.29% | -0.02% | 0.09% | 0.51% | -0.58% | 0.67% | |
| Swiss franc | 0.07% | -0.38% | -0.68% | -0.58% | -0.16% | -1.25% | -0.67% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select USD from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
